Instruction No. 18/2023: Reporting of Information on Remuneration Practices, Gender Pay Gaps and Higher Ratios

Instruction No. 18/2023
Official Gazette No. 7/2023 Supplement • 2023/07/21

..................................................................................................................................................................................................

Themes
Supervision :: Information Elements

Index

Text of the Instruction

CHAPTER I

CHAPTER II Reporting of information on remuneration practices, gender pay gaps and approval of higher ratios

CHAPTER III

Final and transitional provisions

Annex I to the Instruction - Entities subject to the duty to report information on remuneration practices provided for in Article 2(1) of the Instruction

Annex II to the Instruction - Credit institutions subject to the duty to report information on gender pay gaps provided for in Article 2(2) of the Instruction

Text of the Instruction

Subject: Reporting of information on remuneration practices, gender pay gaps and higher ratios

Whereas:

i. The European Banking Authority (EBA) published, on 30 June 2022, the “Guidelines on the assessment of remuneration practices, gender pay gaps and approved higher ratios under Directive 2013/36/EU” (EBA/GL/2022/06);

ii. ii. The EBA/GL/2022/06 repealed the Guidelines on the assessment of remuneration (EBA/GL/2014/08) which formed the basis for the issuance of Banco de Portugal Instruction No. 5/2015, of 15 June;

iii. iii. The EBA/GL/2022/06, applicable since 31 December 2022, now provide for the collection and reporting of a broader set of information on remuneration practices, for the purposes of the annual exercise carried out by the EBA on the matter, as well as the collection and reporting of information aimed at carrying out two additional exercises to be conducted by that authority, one aimed at assessing gender pay gaps, the other aimed at assessing the approved higher ratios between the fixed and variable components of remuneration;

iv. iv. The collection and reporting of information on remuneration practices, gender pay gaps

..................................................................................................................................................................................................

and higher ratios must now comply with the provisions of EBA/GL/2022/06; and v. Banco de Portugal and the European Central Bank have notified the EBA of their intention to comply with the provisions of EBA/GL/2022/06.

In view of the above, it appears necessary to repeal Banco de Portugal Instruction No. 5/2015, of 15 June, replacing it with a new Instruction aligned with the provisions of EBA/GL/2022/06.

Accordingly, this Instruction aims to regulate the duty to report to Banco de Portugal information on remuneration practices, gender pay gaps and higher ratios, as well as to establish that such information is submitted through the file transfer service in the BPnet system, in XBRL format, the data reporting model of which is available from phase 3 of version 3.2 of the EBA taxonomy.

The Instruction identifies the set of institutions subject to the duty to report information on remuneration practices. These institutions were identified by applying the criteria set out in EBA/GL/2022/06 and include the universe of credit institutions that do not benefit from the exemptions on remuneration at institutional level provided for in Article 115-E(20)(a) of the RGICSF. For reasons of coherence and proportionality, in view of the costs that compliance with such reporting duty would entail for all institutions, the institutions benefiting from the aforementioned institutional-level exemption are excluded from the reporting obligation.

In turn, the Instruction identifies the set of institutions subject to the duty to report information on gender pay gaps. These institutions were identified by applying the criteria set out in EBA/GL/2022/06 with the ultimate aim of ensuring the collection of information from a representative and proportional sample of credit institutions in the national banking system, also considering the costs arising from compliance with the reporting duty in question.

In the case of reporting information on higher ratios, it will apply to all credit institutions headquartered in Portugal that have obtained the approval of their shareholders to apply a higher ratio, under the terms of Article 115-F(4)(b) and (5) of the RGICSF.

The draft of this Instruction was subject to public consultation under the legal terms.

Accordingly, Banco de Portugal, in the exercise of the competence conferred on it by Article 115-G(3)(b) of the General Regime for Credit Institutions and Financial Companies approved by Decree-Law No. 298/92, of 31 December, as currently in force, bearing in mind the provisions of Article 140(3) of Regulation (EU) No. 468/2014 of the European Central Bank, of 16 April 2014, which establishes the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities, determines as follows:

Instruction No. 18/2023 Official Gazette No. 7/2023 Supplement • 2023/07/21 Themes Supervision :: Information Elements
..................................................................................................................................................................................................

CHAPTER I General provisions

Article 1 Subject matter

This Instruction regulates the duty, format and deadline for reporting to Banco de Portugal of information on remuneration practices, gender pay gaps and higher ratios.

Article 2 Scope of application

1 – The reporting of information on remuneration practices, provided for in EBA/GL/2022/06, applies to the entities indicated in Annex I to this Instruction.

2 – The reporting of information on gender pay gaps, provided for in EBA/GL/2022/06, applies to the credit institutions indicated in Annex II to this Instruction.

3 – The reporting of information on higher ratios, provided for in EBA/GL/2022/06, applies to credit institutions headquartered in Portugal that have obtained the approval of their shareholders to apply a higher ratio between the fixed and variable components of remuneration under the terms set out in subparagraph b) of paragraph 4 of Article 115-F of the General Regime for Credit Institutions and Financial Companies.

4 – The entities indicated in Annex I to this Instruction shall report the information provided for in EBA/GL/2022/06 on remuneration practices on a consolidated basis.

5 – In cases where paragraph 4 does not apply to them, the entities indicated in Annex I to this Instruction shall report the information provided for in EBA/GL/2022/06 on an individual basis.

6 – The credit institutions indicated in Annex II to this Instruction shall report the information on gender pay gaps on an individual basis.

7 – The credit institutions that comply with the provisions of paragraph 3 of this article shall report the information on higher ratios on an individual basis.

..................................................................................................................................................................................................

CHAPTER II

Reporting of information on remuneration practices, gender pay gaps and approval of higher ratios

Article 3

Information to be reported

1 – The information on remuneration practices to be reported by the entities indicated in Annex I to this Instruction, under the terms set out in paragraphs 4 and 5 of Article 2, as applicable, corresponds to the information contained in Annexes I to III of EBA/GL/2022/06 and to the information contained in templates EU REM1, EU REM2, EU REM3, EU REM4 and EU REM5 of Annex XXXIII of Commission Implementing Regulation (EU) 2021/637 of 15 March 2021.

2 – The information on gender pay gaps to be reported by the credit institutions indicated in Annex II to this Instruction, under the terms set out in paragraph 6 of Article 2, corresponds to the information contained in Annex IV of EBA/GL/2022/06.

3 – The information on higher ratios to be reported by the credit institutions that comply with the provisions of paragraph 3 of Article 2, and under the terms set out in paragraph 7 of the same article, corresponds to the information contained in Annex V of EBA/GL/2022/06.

5 – The information contained in Annexes I to V of EBA/GL/2022/06, as applicable, shall be reported by the entities and credit institutions to which this Instruction is addressed in strict compliance with the specifications set out in Sections 4 to 7 of EBA/GL/2022/06.

6 – The information contained in templates EU REM1, EU REM2, EU REM3, EU REM4 and EU REM5 of Annex XXXIII of Commission Implementing Regulation (EU) 2021/637 of 15 March 2021 shall be reported by the entities indicated in Annex I to this Instruction in strict compliance with the filling instructions of Annex XXXIV of the referred Regulation and the validation rules specified in Annex VII of EBA/GL/2022/06.

Article 4

Format, deadline and frequency of reporting

1 - The information contained in Annexes I to V of EBA/GL/2022/06 and the information specified in templates EU REM1, EU REM2, EU REM3, EU REM4 and EU REM5 of Annex XXXIII of Commission Implementing Regulation (EU) 2021/637 of 15 March 2021 is available from phase 3 of version 3.2 of the EBA taxonomy, and shall be reported to Banco de Portugal in XBRL format, through the file transfer service of the BPnet system, regulated by Banco de Portugal Instruction No. 16/2023, in strict compliance with the technical specifications made available in the Reporting obligations of supervised institutions tab on Banco de Portugal's institutional website.

2 – The reference date of the information to be reported by the entities and credit institutions to which this Instruction is addressed with regard to remuneration practices, gender pay gaps and higher ratios corresponds to the end of each financial year.

..................................................................................................................................................................................................

3 – The information to be reported on remuneration practices shall be sent to Banco de Portugal by the entities indicated in Annex I to this Instruction, annually, by 15 June of the calendar year following the year to which the information relates.

4 - The information to be reported on gender pay gaps shall be sent to Banco de Portugal by the credit institutions indicated in Annex II to this Instruction, every three years, by 15 June of the calendar year following the year to which the information relates.

5 - The information to be reported on higher ratios shall be sent to Banco de Portugal by the credit institutions that comply with the provisions of paragraph 3 of Article 2 of this Instruction, every two years, by 15 June of the calendar year following the year to which the information relates.

CHAPTER III Final and transitional provisions

Article 5 Transitional deadline for the first reporting

1 - The first report, on remuneration practices, to be made by the entities indicated in Annex I to this Instruction is sent to Banco de Portugal by 31 August 2023, with the information relating to the end of the 2022 financial year.

2 - The first report, on gender pay gaps, to be made by the credit institutions indicated in Annex II to this Instruction is sent to Banco de Portugal by 15 June 2024, with the information relating to the end of the 2023 financial year.

3 - The first report, on higher ratios, to be made by the credit institutions that comply with the provisions of paragraph 3 of Article 2 of this Instruction is sent to Banco de Portugal by 31 August 2023, with the information relating to the end of the 2022 financial year.

Article 6 Repeal provision

Banco de Portugal Instruction No. 5/2015, of 15 June 2015, published in the Official Bulletin of Banco de Portugal No. 6 of 15, of June 2015, is repealed.

Article 7 Entry into force

This Instruction enters into force on the day following its publication.

Annex to Instruction No. 18/2023 BO No. 7/2023 Supplement • 2023/07/21
Topics Supervision :: Information Elements
..................................................................................................................................................................................................

Annex I to the Instruction - Entities subject to the duty to report information on remuneration practices provided for in paragraph 1 of Article 2 of the Instruction

Caixa Geral de Depósitos, S.A.
Banco Comercial Português, S.A.
Novo Banco, S.A.
Banco BPI, S.A.
Santander Totta SGPS, S.A.
Caixa Central de Crédito Agrícola Mútuo, CRL
Caixa Económica Montepio Geral, caixa económica bancária, S.A.
Banco BIC Português, S.A.

Annex to Instruction No. 18/2023 BO No. 7/2023 Supplement • 2023/07/21
Topics Supervision :: Information Elements

..................................................................................................................................................................................................

Annex II to the Instruction - Credit institutions subject to the duty to report information on gender pay gaps provided for in paragraph 2 of Article 2 of the Instruction

Caixa Geral de Depósitos, S.A.
Banco Comercial Português, S.A.
Novo Banco, S.A.
Banco BPI, S.A.
Banco Santander Totta, S.A.
Caixa Central de Crédito Agrícola Mútuo, CRL
Caixa Económica Montepio Geral, caixa económica bancária, S.A.
Banco BIC Português, S.A.
Haitong Bank, S.A.
Banco CTT, S.A.
Banco de Investimento Global, S.A.
Banco Finantia, S.A.
Banco Atlântico Europa, S.A.